At SREDucation, we’re taking the time to document all of the changes that have occurred to the SR&ED program over the years. In our “From the Archives” series, you’ll be able to see how the program has evolved since its inception in 1986.
The Canada Revenue Agency (CRA) published an application policy on the SR&ED eligibility of collaborative work done as part of a multinational clinical trial by a Canadian claimant. This paper was dated May 17, 2001.
What is eligible?
Any “work carried on in Canada with respect to multinational clinical trials, by the claimant and/or on behalf of the claimant, constitutes the Canadian contribution”. (1) In order for the contribution to meet the SR&ED eligibility, it must meet the following criteria:
- (…the) “trial attempts to advance scientific knowledge”
- (… the) “Canadian researchers provide input such as (…) developing an evaluation of the scientific content of the proposed research”
- (… and) “the clinical trial conduct(ed) in Canada is based on a protocol that includes a hypothesis, scientific rationale and systematic method of biomedical experimentation amenable to analysis and interpretation” (2)
As with all SR&ED claims, it is critical that the taxpayer keeps stringent records in order to provide evidence to back up the amounts of the claims. As such, for the purposes of multinational clinical trials in SR&ED, it is important that the claimant be able to provide the details on the nature and the role of the trials with respect to achieving technological objectives. The objective of the trial must demonstrate that it was based on scientific method. Any personal information on the study subjects should be excluded to avoid any issues with Privacy Laws.
View further information here.
(1-2) Source 10/15/2012 http://www.cra-arc.gc.ca/txcrdt/sred-rsde/pblctns/sr200102-eng.html